The RNS dated 5th March See Here highlights that Quindell are in the process of streamlining the business and dealing with non core assets and legacy issues.
This is a ‘housekeeping’ RNS and provides the following clarity:
1. The $1m payment etc puts a line in the sand with regard to the litigation in America and removes uncertainty regarding liabilities going forward.
This is important as it removes any uncertainty regarding their Himex offering and removes any potential barrier to Quindell’s aspirations to increase their penetration of the American market.
2. Selling the NARS holding makes sense as NARS doesn’t strategically fit with the future direction of the business.
Selling at a discount to the market rate being purely to ensure the share price didn’t drop if shares put on the open market. In other words this isn’t a fire sale.
3. The Company is also taking measures to consolidate some of its property services interests.
This will be in order to facilitate future options for disposal.
This is a good RNS and indicates the business has already put in measures, as highlighted in a previous RNS, to deal with non core activities and legacy issues.